Swiggy IPO Subscription Details on Day 3

8 Nov 2024 , 12:38 PM

Swiggy launched its IPO on November 6 within a price range of ₹371 to ₹390, with public subscription ending on November 8. The company raised ₹5,085.02 Crore from institutional investors through an anchor book launched on November 5.

Swiggy allocated 75% of its IPO shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors, with 750,000 shares reserved for employees. Eligible employees receive a discount of ₹25 per share.

By day three of bidding, Swiggy’s IPO was subscribed 0.95 times, with the retail segment subscribed at 0.96 times, NIIs at 37 times, QIBs at 1.24 times, and employee allocation at 1.36 times.

Founded in 2014, Swiggy offers food delivery and grocery services (Instamart) through a single app, supported by a network of delivery partners. In the last year, Swiggy’s revenue increased by 34%, while its losses narrowed from ₹4,179.31 Crore to ₹2,350.24 Crore.

The IPO includes a fresh issue of ₹4,499 Crore and an offer-for-sale (OFS) by existing investors, including Accel India IV, Tencent Cloud, and MIH India Food Holdings.

Swiggy plans to use the proceeds to invest in its subsidiary, Scootsy, expand its dark stores, reduce debt, and support technology, marketing, and acquisition initiatives. Lead managers for the Swiggy IPO are Kotak Mahindra, Citigroup, Jefferies India, and others, with Link Intime India as the IPO registrar.